By the time South Africa turned to majority rule in 1994, Kenya had been independent for 31 years. 17 years later, the two nations could not be more different.
Since 1994, South Africa has become one of the best known brands in Africa, riding on peaceful transition and iconic Nelson Mandela. The fact that South Africa became independent alone aided in brand recognition, unlike in the late 50s and early 60s when other African nations gained uhuru in droves.
The political brand often masks the economic part of the rainbow nation. Yet it is economics more than politics than makes South Africa such an attractive nation.
A visit to this nation allows one to sample the economic possibilities and potential of this country, and perhaps make an objective comparison with Kenya.
South African is no doubt a first world country on a third world continent. The Western Cape Province is indistinguishable from Europe or USA, with lots of wineries and beautiful mountains. For a Kenyan, it is unbelievable that such large farms could still exist unchanged after more than three centuries. Contrast that with the former white Highlands in Kenya where land has been subdivided into small uneconomical units.
Kanu bottles
It was very refreshing to come across a winery that bottles Kanu wine, which has no connection with Kenya’s former ruling party. Kanu is actually a mythical bird of promise. In the same province, there is a farm called Kimilili, which is not owned by a Kenyan. Interspersed with wineries are dairy farms, sheep farms are also common and so are olive plantations, wheat farms, rapeseed farms and curiously ostrich farms.
Western Cape has a thriving tourism industry, particularly along the coast which is rocky and mountainous unlike our coast. The Eastern Cape does not seem as rich as Western counterpart but has a thriving dairy industry.
Further north you come across Free State in the high plateau, and lots of farms. And around Johannesburg, heavy industries belching smoke into the air epitomise the South African leadership in industrialisation.
The site of a goldmine and the mountains of waste add to the aura of the rainbow nation. Add traffic jams and the electric fences and this is where commonalities with Kenya emerge.
Though politically South Africa is younger than Kenya, South Africa is older than Kenya economically, and has a few lessons for us.
First are economies of scale. By not subdividing land and ensuring land is put into the best use, aided by science and technology, South Africa has ensured food security, and agriculture has remained a worthy occupation. South Africa is like the white Highlands before they were subdivided and among small scale farmers.
Secondly, there seems to be well developed zoning system where different regions grow different crops or keep different animals, including game farms and golf courses. Can we enforce zoning to ensure maximum productivity? Water rights seem to be in place to ensure equitable sharing and sustainability.
Economic zone
Thirdly, we are not endowed with great natural resources like South Africa, which has everything from gold to platinum and plenty of land. Moreover, South Africa has twice our land mass and over 4,000km of shore line which gives her lots of sea resources if you add the exclusive economic zone that extends 200 nautical miles (370 km). This scarcity of resources demands more creativity and ingenuity on our part.
Fourthly, like South Africa, there is a great divide between the affluent and the poor. There are slums, but they are of higher standard than Kibera. But closing this divide is a political challenge. ANC has introduced Black Economic Empowerment and has in the past toyed with nationalisation, which made asset owners and investors economically nervous.
Fifth, branding matters. By cleverly positioning herself, South Africa has become a global brand that has been translated into business. Example, at OR Tambo airport in Johannesburg, the most vibrant curio shop is curiously called “Out of Africa.” Despite having been filmed in Kenya, we never saw the need to make money out that famous novel and movie.
Sixth, decentralisation remains an enigma in both nations. Finally, both nations are trying to improve their economies for their citizens to enjoy higher standards of living. They have to overcome cultures, global shocks and limited resources.
Conclusion
In the foreseeable future, South Africa will remain the leading economy in Africa. Her biggest challenge is overcoming years of exclusion and avoiding the curse of corruption. Kenya will remain the dominant economy of the East Coast grappling with similar problems.
But perhaps the key to economic prosperity in both nations may not be minerals or industries but political leadership. That will become more apparent as we implement the new Constitution, 17 years after South Africans.
